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There are many reasons why infrastructure projects often fail to materialize, meet their timeframe, budget, or service delivery objectives. Important examples include weak and insufficient planning and assessment of affordability as well as uncertainty over the rules of the game.
These issues severely constrain the ability of governments to mobilize finance to deliver key services that help achieve the Sustainable Development Goals (SDGs). The World Bank estimates that achieving the SDGs would require some $4.5 trillion in public and private investment by 2030.
In light of the financing requirements for the SDGs, the World Bank has developed the Maximizing Finance for Development (MFD) approach to help governments and other stakeholders crowd in private sector solutions while optimizing the use of scarce public resources.
The World Bank Group and the African Development Bank, with support from key development partners, have organized the second Infrastructure Governance Roundtable, to be held in Abidjan, Cote d’Ivoire, June 21-22, to foster a robust dialogue on how best to improve infrastructure governance practices to create sustainable infrastructure, and to assist with building capacity in this area.
A major factor hindering infrastructure implementation and delivery is the absence of good governance, according to the 130 delegates from 27 countries who came together for the first Regional Roundtable on Infrastructure Governance in Cape Town in November.
There’s no denying infrastructure is crucial to Africa’s growth prospects. Nor can one ignore the ever-growing need for infrastructure on the continent—in Sub-Saharan Africa, only 35% of the population has access to electricity, and 23% still lack access to safe water and sanitation. Despite an estimated shortfall of nearly $100 billion in infrastructure investment in Africa, lack of financing is not the biggest problem.
The landmark Roundtable brought together representatives from African governments, the global private sector, multilateral and international organizations, civil society organizations and other development partners, for a discussion on the challenges and practical solutions to the governance impeding successful infrastructure delivery in Africa.
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In the aftermath of the global financial crisis, policy makers focused on improving access to finance, missing the crux of the problem: governance.
In pursuit of achieving the Sustainable Development Goals through the 2015 Addis Ababa Action Agenda on financing for development, the Regional Roundtables on Infrastructure Governance* were created to promote a community of practice comprising government officials and the international development community to strengthen capacities within developing countries and establish good practices in infrastructure governance across various government sectors.
The inaugural roundtable, hosted by the Development Bank of Southern Africa, will take place in Cape Town on November 2-3, 2017, and aims to emphasize that for the commercial financing of infrastructure to be a viable option, governance reforms must happen.
Infrastructure is expensive, important and difficult to get right. For both the members of the Organisation for Economic Co-operation and Development (OECD) as well as other countries, infrastructure exposes shortcomings in country systems that may undermine our ability to identify, develop and procure good projects that are sustainable, affordable and legitimate. But there is no alternative—businesses rely on modern infrastructure to remain competitive, and society depends on good infrastructure to ensure equal opportunity and access to services for citizens.
With sufficient access to finance, .
In response to this challenge, investors, regulators, members of the public and private sectors, and decision makers from across levels of government, expertise, and regions, gathered at the 2nd OECD Forum on the Governance of Infrastructure in Paris in March to discuss the impact of infrastructure governance on productivity, jobs and wellbeing.